Hillenbrand Inc (HI)
Cash ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 242,900 | 232,200 | 446,100 | 302,200 | 399,000 |
| Short-term investments | US$ in thousands | — | 1,900 | — | — | — |
| Total current liabilities | US$ in thousands | 1,291,000 | 1,077,800 | 1,035,100 | 852,100 | 589,300 |
| Cash ratio | 0.19 | 0.22 | 0.43 | 0.35 | 0.68 |
September 30, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($242,900K
+ $—K)
÷ $1,291,000K
= 0.19
The cash ratio for Hillenbrand Inc has shown a declining trend over the past five years, decreasing from 0.76 in 2019 to 0.28 in 2023. This indicates a decrease in the company's ability to cover its short-term liabilities with its readily available cash and cash equivalents. While a cash ratio above 1.0 is generally considered favorable, the downward trajectory of Hillenbrand's cash ratio may raise concerns about its liquidity and ability to meet immediate financial obligations. Further analysis of the company's cash flow management and liquidity position would be necessary to fully understand the implications of this trend.
Peer comparison
Sep 30, 2023